JBS Corporation Owners Sold Shares before the Plea-Bargain Was Leaked

06/12/2017 - 12h02

On the eve of the release of information regarding the plea-bargain agreement that they had closed with the Federal General Prosecutor, controlling shareholders of food company giant JBS Corporation sold R$ 10 million (US$ 3 million) in shares of the company, avoiding losses of at least R$ 1 million (US$ 300 thousand).

On the 16th of May, they sold 958 company shares at R$ 10,11 each (US$ 3,06). The controlling JBS shareholders are FB Participations, a Batista family holding company, and the Banco Original, which also belongs to the company founders.

News of the plea-bargain for brothers Joesley and Wesley Batista was released on the following day, after the close of the São Paulo Stock Exchange. On the 18th of May, company shares fell by 10,5%. Since then, they have lost 23,4% of their value.

The Federal Police and the CVM (Securities Commission) have investigated stock and currency exchange operations carried out by JBS' owners before release of the news regarding the plea-bargain. Allegedly, they improperly used insider information to profit in financial markets.

In a written communication, JBS Corporation said that all operations by the company and its controlling shareholders were carried out in accordance with the law and that the group is cooperating in the investigations.

	Danilo Verpa/Folhapress
	Joesley Batista, one of the owners of the meatpacker JBS

Translated by LLOYD HARDER

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